The Kenya Revenue Authority (KRA) has introduced an Automated Payment Plan (APP) aimed at easing the financial burden on taxpayers with outstanding tax liabilities.

The rollout, effective November 7, 2025, allows eligible taxpayers to settle principal tax, penalties, and interest through structured monthly instalments over a period of up to six months.

The initiative seeks to promote compliance while enhancing convenience in tax settlement.

Structured instalments

In a notice, KRA stated that the APP is designed to accommodate taxpayers facing difficulties in making lump-sum payments.

“Kenya Revenue Authority (KRA) wishes to inform taxpayers and the general public that, as part of its ongoing commitment to enhance convenience and promote compliance, it is introducing a new Automated Payment Plan (APP) mechanism,” the notice read in part.

The system is accessible through iTax and other designated KRA online platforms, allowing taxpayers to submit payment proposals subject to system validation. The APP aims to provide a structured avenue for taxpayers to clear arrears without disrupting their financial stability.

Eligibility requirements and compliance obligations

To qualify for the APP, taxpayers must meet specific conditions as outlined in the notice.

• They must possess valid KRA PINs, be fully compliant with iTax profile requirements.
• Have tax liabilities confirmed in the KRA system that are not under active objection, appeal, or litigation.
• Demonstrate a genuine inability to settle the liability in a single payment.
• Submit a proposed instalment schedule via iTax or other designated KRA portals.
• Ensure the instalment period does not exceed six months

The notice emphasises adherence to the agreed schedule, stating, “Failure to adhere to the agreed payment schedule may lead to termination of the plan and trigger enforcement actions. These may include revocation of the Tax Compliance Certificate and other legal recovery measures.”

Advisory to taxpayers

KRA has also provided support channels for taxpayers seeking assistance. Taxpayers may also dial *222# for free support services or visit www.kra.go.ke for additional guidance.

A disclaimer in the notice states, “KRA notifies taxpayers that it will not accept responsibility for payments not received, credited and validated in the relevant KRA accounts.”

The rollout of the Automated Payment Plan marks a notable step in offering structured relief to taxpayers while reinforcing the importance of compliance in revenue administration.